Singapore Exchange (SGX) announced the launch of SGX Iron Ore Futures Indices, a suite of inverse and leveraged indices calculated off the SGX TSI Iron Ore CFR China (62% Fe Fines) Index Futures.
This is the first series of SGX commodity-based indices to be used as benchmark for tradable products and they will be licensed to Daishin Securities Co. Ltd., a Korea-based securities and investment firm.
The suite is made up of two total return indices that offer investors both long and short exposure to the seaborne iron ore market based on the underlying US dollar denominated SGX Iron Ore Futures.
William Chin, Head of Commodities at SGX said:
With demand for iron ore linked directly to industrialisation across the globe, and particularly in Asia, iron ore has emerged as a robust barometer of global economic activity.
Simon Karaban, Head of SGX Index Edge, commented:
These new iron ore indices are the first of their kind and they offer investors a new channel to track and access this highly dynamic market. They build on SGX’s expertise in iron ore price discovery, which is illustrated by the growing liquidity and depth of our iron ore futures market.